The month-end close checklist for a small finance team
A good close isn't heroics on the last day — it's a repeatable list run the same way every month. Here's a lean version that holds up under scrutiny.
Before the close (keep it clean all month)
- Enter transactions as they happen; don't let a backlog build.
- Keep location/category codes consistent — a data-validation drop-down prevents the typos that wreck summaries later.
The checklist
- Cut-off. Confirm the period's transactions are all in and nothing from next month leaked in.
- Reconcile every bank account. Match the statement to your books (see bank reconciliation explained).
- Reconcile deposits / cash receipts. Prove collections landed in the bank (method here).
- Review accounts receivable. Chase overdue invoices; confirm nothing's double-counted.
- Review accounts payable. Make sure bills are entered in the right period.
- Book accruals and prepaids. Record expenses incurred but not yet billed; spread prepaids.
- Reconcile credit cards and clearing accounts. These hide the most errors.
- Review the P&L against prior month and budget. Investigate anything that moved more than you expect — a PivotTable by location/month makes this a glance.
- Reconcile the balance sheet. Every balance should be something you can support with a schedule.
- Lock the period and file the support. Save the reconciliations and schedules where next month's close can find them.
Make it faster next month
The repeatable parts — importing exports, cleaning them, re-running the same summary — are perfect for Power Query. And reconciliation across several entities is the part TrueBalance and IMS Made Simple were built to shorten.